All Forum Posts by: Adam Oldham

Hey @Chris Mullinax I would say the biggest thing I look for is how the PM will handle repairs and maintenance to the property. More specifically, I would be frustrated if I hired a property manager and when there was an issue with the furnace/ac they would simply call the big brand HVAC companies who charge a trip charge to come out and look at the issue and then give a high quote that to me is often excessive. 

In this scenario I would want the PM to first talk with the tenant and try to troubleshoot the issue, if that doesn't work call out a handyman to look closer at the issue, if it still can't be fixed then get a licensed HVAC technician to look at the issue. 

A plus for any PM is finding additional ways to save me money. If I have to make upgrades/improvements I would want the PM to consider the neighborhood and goals of the investor to best maximize their ROI on the improvement/repair.

Echoing what @Dan H. said, definitely underwrite it as a long term rental, I have mid term rentals but they're not always rented due to turns between tenants. The second thing would be that in my experience tenants who rent a 1bed 1bath are more likely to stay for a shorter period of time say one year and then need to find a bigger place. So your tenant turnover I expect to be higher & usually the quality of tenants is not good. However, you mentioned the house is new construction and located in fountain square which are both huge advantages. I would say if you are all in on a 4plex for 300k in fountain square you should do alright. Let me know how this deal goes!  

 Thanks for the insight, I am definitely more willing to play the long game with these deals and I agree that the risk needs to be adjusted to the individual investors goals. 

Are people still looking for cash flow in this market or are you looking at the long term & thinking that deals will be more profitable over the long run as rents rise relative to your current debt and if rates go back down you can refinance into a lower monthly payment. 

I am looking at a lot of deals in the midwest that don't make sense when trying to do a BRRRR and refinance into a standard rental or mid-term rental. My initial thought is that as long as I can not be negative on the mortgage that it will probably be more beneficial to pick up more units, and in the future they will be worth more which will offset the minimal ROI that I am receiving initially & my cash flow will improve. My only concern is that this seems like a slippery slope to go down.

What are peoples thought on this? 

@Tyler Lingle Hey I do believe with the new Indianapolis building code once you get over 2 units you are required to install a fire suppression system which isn't cheap(10k). 

Prefabricated from what I have seen is roughly the same cost, because by the time you factor in the need for cranes to set the walls, it eliminates the cost savings. You would also need a fairly open plot of land to really be able to maneuver the cranes. These were just some of the comments a developer mentioned to me who was doing prefab houses. They said the real advantage was the time to build them but ran into delays due to the permit office not knowing how to approve this design since it's not very common. Hope this helps!

@Josh Klein what are you seeing the cost is to build a 3bd/2ba house on a crawl/slab, with basic finishes(laminate countertops, stock cabinets etc.)?

Hey @Ben Morand as Kerry mentioned we have developed a web app that showcases all of the permitted jobs in Indianapolis so that investors can see what contractors are doing what work & reach out to them. I'll send you a dm to connect!  

On a side note I have a few MTR that I would be happy to chat about if you have questions. 

Best,

Adam 

@Sparkle Carlock yes I have found it to be fairly consistent. It requires a little bit more work since our lease length can vary, but overall its been good. 

The MTR is fairly strong here, I am currently renting to travel nurses that I was originally using the houses for STR. When the economy slowed down I did not see as many people traveling to Indianapolis, and I was getting tired of the constant turnover between STR guests.

I wouldn't say its super lucrative but its a lot less work & in general I think you get a higher quality tenant who spends most of their time working, which is good for the wear & tear of your property. 

@Nathan Murith thanks for the resources I'll definitely check them out.